Bond Dollar Sukuk Islamic USD Offshore Issuance 2026
The Sukuk market, representing Islamic financial instruments, has experienced significant growth in recent years, driven by increasing demand for Sharia-compliant investment options and a rising interest in sustainable financing. In 2022, the global Sukuk market reached approximately USD 635 billion, with expectations to surpass USD 700 billion by 2026. The offshore issuance of Sukuk in USD has become particularly appealing to investors seeking diversification and favorable returns, showcasing the evolution of Islamic finance and its integration into global capital markets.
1. Saudi Arabia
Saudi Arabia is the top issuer of Sukuk, with a total Sukuk issuance of around USD 100 billion as of 2021. By 2026, the Kingdom is expected to issue more offshore Sukuk, capitalizing on its Vision 2030 strategy aimed at economic diversification.
2. Malaysia
Malaysia is a pioneer in the Sukuk market, accounting for approximately 50% of global Sukuk issuances. In 2021, the country issued USD 5.5 billion in offshore Sukuk, reflecting its robust regulatory framework and demand for Islamic financing.
3. United Arab Emirates (UAE)
The UAE ranks third in global Sukuk issuance, with over USD 40 billion worth of Sukuk issued in 2021. The Dubai Financial Services Authority continues to attract international issuers, bolstering the country’s position in offshore Sukuk issuance.
4. Indonesia
Indonesia’s Sukuk market reached USD 25 billion as of 2021, with the government actively promoting Sukuk to finance infrastructure projects. The country aims to increase its offshore issuance to attract foreign investors.
5. Turkey
Turkey has been expanding its Sukuk issuance, reaching USD 10 billion as of 2021. The government is expected to introduce new regulations to facilitate offshore Sukuk issuance, enhancing its market appeal.
6. Bahrain
Bahrain is a key player in the Sukuk market, with a total issuance of USD 4 billion in 2021. The country’s financial sector is increasingly focused on attracting international investors through diversified Sukuk offerings.
7. Pakistan
Pakistan issued USD 2 billion in Sukuk in 2021, primarily to finance infrastructure projects. The government plans to increase its offshore issuance to strengthen its fiscal position and attract foreign investment.
8. Qatar
Qatar’s Sukuk market has seen rapid growth, with a total issuance of USD 9 billion in 2021. The country aims to leverage its strong economic fundamentals to enhance its offshore Sukuk offerings.
9. Egypt
Egypt has recently entered the Sukuk market, with planned issuances expected to reach USD 1 billion by 2026. The government is keen on utilizing Sukuk to fund various development projects.
10. Oman
Oman issued USD 3 billion in Sukuk in 2021, focusing on financing public projects. The Sultanate is exploring opportunities to increase its offshore Sukuk issuance to attract foreign capital.
11. Morocco
Morocco’s Sukuk market is emerging, with an expected issuance of USD 1.5 billion by 2026. The government is considering Sukuk as a financing option for major infrastructure initiatives.
12. Nigeria
Nigeria’s Sukuk market reached USD 1 billion in 2021, with plans to issue more offshore Sukuk to finance development projects. The government is focused on expanding its investor base through Islamic finance.
13. Jordan
Jordan issued its first Sukuk in 2021, valued at USD 1 billion. The country aims to tap into the growing Sukuk market, enhancing its financial offerings to international investors.
14. South Africa
South Africa’s Sukuk market is in its infancy, with a target issuance of USD 500 million by 2026. The government is exploring Sukuk to diversify its funding sources and attract Islamic investment.
15. Kuwait
Kuwait issued USD 3 billion in Sukuk in 2021, focusing on infrastructure development. The country aims to enhance its offshore Sukuk offerings to attract international investors.
16. Bangladesh
Bangladesh plans to issue USD 1 billion in Sukuk by 2026, primarily to finance infrastructure and development projects. The government is keen on leveraging Islamic finance to meet its growth targets.
17. Lebanon
Lebanon’s Sukuk market is emerging, with a planned issuance of USD 500 million by 2026. The government is exploring Sukuk as a means to attract foreign investment amid economic challenges.
18. Afghanistan
Afghanistan is looking to enter the Sukuk market with a target issuance of USD 300 million by 2026. The government aims to use Sukuk to finance reconstruction and development projects.
19. Sri Lanka
Sri Lanka is planning a Sukuk issuance of USD 1 billion by 2026, focusing on infrastructure and social projects. The government recognizes the potential of Islamic finance in attracting foreign investments.
20. Maldives
The Maldives issued its first Sukuk in 2021, valued at USD 200 million. The government aims to expand its Sukuk offerings to finance tourism and infrastructure projects, tapping into the growing Islamic finance market.
Insights
The Sukuk market is poised for exponential growth, driven by increasing awareness of Islamic finance principles and the need for sustainable investment options. As of 2022, the global Sukuk market size was estimated at USD 635 billion, with projections indicating it could exceed USD 700 billion by 2026. Increasing offshore issuances are expected to attract diverse investors, particularly in regions like the Middle East and Southeast Asia. As more countries explore Sukuk as a financing mechanism, the integration of these instruments into mainstream capital markets will likely enhance liquidity and provide new avenues for investment, further solidifying the importance of Sukuk in the global finance landscape.
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